Lotte opens third Choco Pie production line in India

Industry

Published: 10 Oct. 2023, 16:58 Updated: 10 Oct. 2023, 19:16

Lotte opens third Choco Pie production line in India

Lotte India's Chennai factory in India [LOTTE WELLFOOD]

The third Choco Pie production line has begun operating in India on Tuesday after Lotte India, an Indian subsidiary of Lotte Wellfood, injected 30 billion won ($22.21 million) for expanding the facility in Chennai.

The expansion came as the snack cake product continues to gain solid popularity in the world's most populated country as a dessert or sometimes a quick eat as a meal.

The Chennai and New Delhi Haryana factory production lines had already been operating at over 104 percent of capacity on average by 2022, according to the confectionery unit of Lotte Corporation.

"Our goal for this year is to actively promote our products based on the increased supply stability achieved through the expanded production line," a Lotte Wellfood spokesperson said. "We are aiming for a growth rate of over 20 percent in the Indian market compared to the previous year."

Lotte Wellfood has been producing Choco Pies at its Chennai factory in southern India since 2010. In 2015, the company further expanded its operations by establishing a new Choco Pie factory near New Delhi in northern India, connecting the northern and southern regions of the country.

A promotional image of Lotte Wellfood's Choco Pie for the Indian market [LOTTE WELLFOOD]

With the expansion of the Choco Pie production line, Lotte Wellfood anticipates its local production capacity will increase by more than 1.5 times its previous capacity. Once the new production line commences operation, it is estimated that an additional 400 million Choco Pies can be produced annually.

Lotte Wellfood aims to achieve 80 billion won in sales for the Indian Choco Pie brand this year, a 20 percent increase from the previous year.

In the competitive Choco Pie market, Lotte's Choco Pie holds an 80 percent market share in India, making it a significant player alongside competitors like Orion, which has a more extensive presence in other countries such as China, Russia, and its home country, Korea.

In 2022, Lotte India's revenue increased by 31 percent to 92.9 billion won.

Meanwhile, the sales of the Lotte Choco Pie brand amounted to 50 billion won in 2021 and 65 billion won last year.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]